08/29/2011

Popular Myths about Government Spending

Hans Bader at CEI's OpenMarket blog has an excellent article on the belief that insufficient government spending caused the Great Depression and stands in the way of economic recovery today:

The federal budget deficit is already around $1.6 trillion, meaning that the government is borrowing more than 40 cents of every dollar it spends. But The New York Times’ editorial board and some Obama administration officials want to run up even bigger deficits to pay for liberal programs, supposedly to “stimulate” the economy. (Never mind that the $800 billion stimulus package failed, and even wiped out some jobs, such as in America’s export sector.)